American electric carmaker Tesla Motors has reportedits first quarterly net profit in more than three years. Elon Musk's electric car company reported a total profit of $22 million for the third quarter.
While $22 million might not seem to be much for some of the larger automakers around, it is a positive sign for Tesla, which made a loss of $230 million in the same period last year.
The major reason for the upturn in fortune for Tesla was the $139 million in sales of California zero emission vehicle (ZEV) credits by the company. These ZEV credits can be bought by rival companies who don't sell electric cars of their own.
Other reasons for the return to profit include record revenues and deliveries which was helped by the arrival of the Model X SUV last year.
Tesla founder and CEO Elon Musk also hinted that the company could make a small profit in the next quarter as well. "New product launches, increased store efficiency and new store openings drove year-on-year order growth in the third quarter, while self-driving hardware and other product enhancements position Tesla for additional market share gains," Musk said in the letter with chief finance officer Jason Wheeler.
Musk also told analysts the company's current plan doesn't require it to raise funds to build the mass-market Model 3 which does signal that the company has reduced the costs for launching production of the Model 3.